Cybeats Announces Private Placement and Closing of First Tranche

Rhea-AI Summary

Cybeats Technologies Corp. announced a non-brokered private placement of up to 8,000,000 units at $1.00 each, aiming for gross proceeds of C$8,000,000. Each unit consists of one common share and one warrant, exercisable at $1.40 for two years. The first tranche raised C$2,112,000 through 2,112,000 units. The funds will support the growing demand in the SBOM management market and onboarding new enterprise clients. The offering included participation from insiders, acquiring 600,000 units, and is classified as a related party transaction. The company retains the option to increase the placement to 15,000,000 units for C$15,000,000. All securities will be subject to a four-month hold period after closing.

Positive

• Successfully raised C$2,112,000 in the initial tranche.
• Funding will support increasing demand for SBOM management services.
• Recent onboarding of enterprise clients expected to enhance revenue opportunities.

Negative

• Insider participation may raise concerns about minority shareholder interests.
• No significant financial metrics provided for overall impact on future performance.

TORONTO, April 6, 2023 /PRNewswire/ - Cybeats Technologies Corp. ("Cybeats'' or the "Company")(CSE: CYBT) (OTCQB: CYBCF) is pleased to announce a non-brokered private placement up to 8,000,000 units of the Company (the "Units") at a price of $1.00 per Unit for gross proceeds of C$8,000,000 (the "Offering").

Each Unit will be comprised of one common share of the Company (a "Common Share") and one whole Common Share purchase warrant (each, a "Warrant"). Each Warrant shall be exercisable to acquire one Common Share at an exercise price of $1.40 for a period of 24 months from the date of issuance.

The Company has completed the first tranche of its non-brokered private placement through the issuance of 2,112,000 Units for gross proceeds of $2,112,000. Investors or industry professionals interested in participating in the placement or looking for more information may contact the Company using the details below. 

"The capital raise will fuel the ongoing support of our overwhelming commercial demand within the growing SBOM management market. The working capital will also support the onboarding of recently announced enterprise clients," said Yoav Raiter, CEO, Cybeats.

Gross proceeds raised from the Offering will be used for working capital and general corporate purposes. The securities issued upon closing of the Offering will be subject to a hold period of four months plus a day from the date of closing, pursuant to applicable securities laws. The closing of the Offering is subject to certain conditions including, but not limited to, the receipt of all necessary regulatory and other approvals. Certain eligible persons (the "Finders") were issued 6,100 Units representing (a) cash commission in the amount of $6,100.

The Offering constituted a "related party transaction" as defined in Multilateral Instrument 61-101 – Protection of Minority Securityholders in Special Transactions ("MI 61-101"), as insiders of the Company acquired 600,000 Units. The Company is relying on the exemptions from the valuation and minority shareholder approval requirements of MI 61-101 contained in sections 5.5(a) and 5.7(1)(a) of MI 61-101, as the fair market value of the participation in the Offering by insiders does not exceed 25% of the market capitalization of the Company, as determined in accordance with MI 61-101.  The Company did not file a material change report in respect of the related party transaction at least 21 days before the closing of the Offering, which the Company deems reasonable in the circumstances so as to be able to avail itself of the proceeds of the Offering in an expeditious manner.

The company has reserved the right with the Canadian Securities Exchange to raise up to 15,000,000 units in the capital of the Company for gross proceeds of up to $15,000,000.

About Cybeats

Cybeats is a cybersecurity company providing SBOM management and software supply chain intelligence technology, helping organizations to manage risk, meet compliance requirements, and secure their software from procurement to development and operation. Our platform gives customers comprehensive visibility and transparency into their software supply chain, enabling them to improve operational efficiency and increase revenue. Cybeats. Software Made Certain. Website: https://cybeats.com 

SUBSCRIBE: For more information, or to subscribe to the Company's mail list, visit: https://www.cybeats.com/investors 

Forward-looking Information Cautionary Statement

Except for statements of historic fact, this news release contains certain "forward-looking information" within the meaning of applicable securities law.   Forward-looking information is frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate" and other similar words, or statements that certain events or conditions "may" or "will" occur.   Forward-looking statements are based on the opinions and estimates at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those anticipated in the forward-looking statements including, but not limited to delays or uncertainties with regulatory approvals, including that of the CSE.  There are uncertainties inherent in forward-looking information, including factors beyond the Company's control. There are no assurances that the commercialization plans for the products described in this news release will come into effect on the terms or time frame described herein.  The Company undertakes no obligation to update forward-looking information if circumstances or management's estimates or opinions should change except as required by law.  The reader is cautioned not to place undue reliance on forward-looking statements.  Company filings are available at sedar.com.

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SOURCE Cybeats Technologies Corp.

FAQ

What is Cybeats Technologies' recent private placement announcement about?

Cybeats announced a non-brokered private placement for up to 8,000,000 units at $1.00 each, targeting C$8,000,000 in total.

How much capital did Cybeats raise in the first tranche of the private placement?

Cybeats raised C$2,112,000 by issuing 2,112,000 units in the first tranche.

What are the terms of the warrants in Cybeats' private placement?

Each warrant allows the purchase of one common share at an exercise price of $1.40 for a period of 24 months.

What will the proceeds from the private placement be used for?

The proceeds will support working capital and the onboarding of new enterprise clients in the SBOM management market.

Is the private placement a related party transaction for Cybeats?

Yes, the private placement includes insider participation, constituting a related party transaction.

Can Cybeats increase the size of the private placement?

Yes, Cybeats has the option to increase the placement to 15,000,000 units for gross proceeds of up to C$15,000,000.